What's more,James x uk said I find the sob stories from continent-bound Brits panicking about sterling's sudden and undeniably painful downward plunge against the euro somewhat perverse. The time to fret about the cost of living in the eurozone is not now. It was when the euro became legal tender in 2002. Exchange rates are a today-tomorrow thing - remember how the euro tanked following its firework-popping formal launch ten years ago this coming January? But there was nothing impermanent about the hefty increase in the price of just about everything that accompanied the moment of conversion from national currenciesThe euro has won this round of the beauty contest, no question; but there are only ugly sisters in the line-up. It has roared up against the dollar as well as the pound this month, though it is worth remembering what a seesaw ride the euro-dollar rate has been since summer. The euro hit a record high of $1.59 in July, only to fall to $1.25 in late October before it bounced up to $1.39 last week. email us for cheap property lists no sob stories from Mallorca property owners

But this has had far more to do with the widening gap between ECB interest rates, still 2.5 per cent, and America's, now near zero, than with confidence in the eurozone's economic health - which is low, and sinking fast. With Germany headed into its worst recession since the war, France contracting, Italy in the doldrums and Spain's already high unemployment soaring with the bursting of its property bubble, the Deutsche Bank expects the euro to be back down to $1.21 within a year. no sob stories here just email us today from Mallorca property owners

As for the 20 per cent fall of the pound against the euro, an overlooked factor is that, reflecting stronger growth in the UK than in core eurozone countries, the pound has been extremely strong in recent years (too strong, in terms of purchasing power parity, making London the most expensive city in Europe). The higher you climb, the farther there is to fall. email us for cheap property lists no sob stories Mallorca property owners

When the City hit the rocks this autumn and “No more boom or bust” turned into “No more boom. Bust”, sterling was heavily hit. Logically enough: the UK's heavy reliance on financial services made it likely that it would suffer a particularly severe recession. In addition, investors were alerted to just how much of that seemingly impressive growth had been buttressed by public borrowing and a three-fold increase in household debt. The final straw, though, was yet again interest rates: once the Bank of England slashed rates to 2 per cent with further cuts expected, sterling assets looked decidedly unattractive.no sob stories here just email us today at Mallorca property owners

Brits living in continental Europe have to put up not only with shrinking wallets, but a touch of condescension. The French feel vindicated in their distrust of le capitalisme sauvage (which really means distrust of capitalism). After a decade enduring lectures from Gordon Brown about their earthbound economy, the Germans are being less than tactful about their views of his housekeeping. And here in Italy, La Stampa gleefully calculates that, at the current exchange rate, Britain's GDP was lower than Italy's. email us for cheap property lists no sob stories from Mallorca property owners contact James x uk  0034 680 562 418

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